Zynga and 10 Others Make for Busiest IPO Week Since 2007
While Zynga’s initial public offering may be the most prominent, ten other companies will seek to list this week, potentially making it the busiest week for new listings in more than four years.
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In the final week for U.S. initial public offerings ahead of the annual holiday hiatus, Zynga, which will trade on the Nasdaq under the symbol ZNGA, is getting attention for many reasons: it occupies a niche — social Internet media — and it’s making money doing it with games like FarmVille and CityVille; it holds the top spot for social games played on Facebook, with a pipeline of new games in development; and it’s seeking to raise as much as $1 billion in its IPO.
However, two other companies stand out as IPOs to watch: social business software maker Jive Software Inc. and luxury apparel company Michael Kors Holdings Ltd.
The Michael Kors brand has been around for 30 years, with the company’s fashions gracing celebrities and the company’s namesake designer widening brand awareness as a judge on TV’s Project Runway. The company has experienced positive same-store sales growth in every quarter of the last five fiscal years, and in the six months ending October 1, total revenue rose 61% to $549 million while comparable store sales grew 42% and net income doubled to $65 million compared to the same period of 2010.
Michael Kors Holdings will seek to raise as much as $792 million in its IPO, and will trade on the New York Stock Exchange under the symbol KORS.
Jive Software, which makes social business software that allows communication and collaboration between a company’s employees and its customers and partners, introduced its current software program, known as Jive Engage, in 2007, and it is now used by 657 customers, including Hewlett-Packard (NYSE:HPQ), SAP AG (NYSE:SAP) and UBS AG (NYSE:UBS).
While Jive’s revenue has been rising swiftly, the company admits to a history of losses and warns that it doesn’t expect to be profitable in “the foreseeable future,” thanks to increased operation and capital expenditures.
There are lower levels of interest in this week’s remaining eight deals, but should all 11 companies begin trading, it will be the busiest week for the U.S. IPO market since 13 stocks launched in November 2007. Among the others is specialty chemicals and metals designer Luxfor Holdings PLC, which wants to raise as much as $161 million, and GSE Holding Inc., which makes liners, membranes, and drainage products that are used in a variety of industries, from mining to agriculture, and seeks to raise $135 million in its IPO.
FusionStorm Global Inc. hopes to raise as much as $189 million so that it can purchase three information technology companies and integrate them into one large vendor and service provider.
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The rest of the week’s IPOs are energy companies from all corners of the industry, from natural gas storage and pipeline partnership Inergy Midstream L.P. to oil and gas exploration and production firm Laredo Petroleum Holdings Inc., the biggest IPO of the group at up to $350 million.